According to market sources report to SteelMint, few Odisha based major iron ore miners- KJS Ahluwalia, Kaypee Enterprises, RP Sao and Rungta Mines have increased iron ore fines prices wef today 26th Jul’18. As per the sources they have increased iron ore fines prices by INR150/MT, however, lump prices remain unchanged.
Currently trade reference price for Fe 63% iron ore fines is around INR 2,400-2,450/MT (ex-mines, including Royalty, DMF & NMET).
Reason for increase in iron ore fines prices-:
1. Increased Pellets export realization-: Indian pellets has continued to remain on the higher side following which pellet export price assessment has gone up by USD 4/MT M-o-M. Assessment for regular grade Fe 64% containing alumina about 3% is heard around USD 122-123/MT, CFR China which is equivalent to USD 112/MT (INR 7,690/MT), FoB India.
In Barbil pellet reference prices in the domestic market is around INR 6,500/MT (loaded to wagons).
2. Less production amid monsoon-: This is the seasonal effect which is usually affecting iron ore production. Iron ore production is expected to come down further amid monsoons.
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